Last year, Buckner & Jones Company incurred the following costs:

Buckner & Jones produced and sold 2,060 units at a sales price of $131.25 each.Assume that beginning and ending inventories of materials, work in process, and finished goods were zero.
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The total product costs were:

A) $199,500.
B) $100,000.
C) $150,000.
D) $236,000.

Question

Last year, Buckner & Jones Company incurred the following costs: 
 
Buckner & Jones produced and sold 2,060 units at a sales price of $131.25 each.Assume that beginning and ending inventories of materials, work in process, and finished goods were zero.
-
The total product costs were:

A) $199,500. 
B) $100,000. 
C) $150,000. 
D) $236,000.

Quizplus · Accepted Answer

SUPPORTING CALCULATIONS:
Total Product Cost = Direct Materials + Direct Labor + Manufacturing Overhead
= $42,000 + $63,000 + $94,500 = $199,500

Last Year, Buckner & Jones Company Incurred the Following Costs